Magma Fincorp which will launch its ?Suvidha? loan scheme for the first time in Jharkhand and Bihar is targeting to disburse around Rs 450 crore under all its schemes in the two states in the current financial year.
According to Magma Fincorp zonal sales manager Ranjan Bhakat, the company will introduce its ?Suvidha? loan scheme for its semi-urban/rural clientele in Jharkhand and Bihar to refinance ?used commercial vehicles? at rates varying between 16% to 18% (on reducing balance) and for tenures of three to four years.
?We would be targeting people with a small budget for used commercial vehicles especially as banks are reluctant to finance such used capital assets,? said Bhakat.
Magma Fincorp which today has a network of 10 branch offices in the two states located at Ranchi, Jamshedpur, Dhanbad, Bokaro, Hazaribag, Patna, Muzaffarpur, Bhagalpur, Sasaram and Jhumri Teliya, is poised to open two more branches at Purnea and Motihari in the current financial year.
Among other NBFCs present in the region, while Shriram Transport Finance has a network of branches spread over Bihar and Jharkhand, Cholamandalam Investment & Finance Company is said to have a limited presence that too only in Jharkhand.
Magma Fincorp which had seen loan disbursements to the tune of Rs 303 crore in 2009-10 in the two states, had achieved it by way of disbursing Rs 157 crore as loans for new commercial vehicles, Rs 94 crore for construction equipments, Rs 34 crore as car loans and Rs 9 crore each for loans for financing tractors and to small & medium enterprises (SMEs).
During the year, its tractor loan business had shot up by 169%, while its commercial vehicles loans grew by 8%, with SME loans, restricted only to Jharkhand, grew by a healthy 94%.
?By penetrating deeper in the two states, we will focus on providing asset finance to the economically disenfranchised,? said Bhakat, adding that the NBFC was targeting to grow by over 40% in Bihar and Jharkhand during the current financial year.